It has come to the attention of the Premier's Department that many Government Agencies are not aware of the Commonwealth Defence Employer Support Payment Scheme (ESP Scheme).

The ESP Scheme commenced in June 2001, and is designed to compensate employers - including State and Territory Governments - for the absence of employees on military leave. The rate of compensation under the scheme is equivalent to Average Weekly Ordinary Time Earnings (AWOTE), being based on Australian Bureau of Statistics figures. The amount of compensation to employers for this financial year (2003-2004) has been set at $899.80/week.

For a period of defence service to count for payment under the ESP Scheme the duration of the service must be at least five days, in addition to a qualifying period of fourteen days continuous defence service in a financial year. As such, the Scheme effectively cuts in after an employee has taken 3 weeks military leave.

While the Department of Defence ordinarily requires that an application for reimbursement occur within six months of an employee absence on Military Leave, the Department of Defence has indicated that this requirement may be waived where employers indicate that they were previously unaware of the Scheme. As such, it is possible that Departments could claim for all employee absences on military leave of at least 3 weeks duration that occurred in any financial year, subsequent to June 2001.

Further details of the Commonwealth Defence Employer Support Payment Scheme, and contact details at the Commonwealth Department of Defence are attached.

Further information can also be found at the following website: www.defence.gov.au/reserves

If you have any further questions in relation to this matter, please contact Simon Spence at the Premier's Department on p. 9228 3612.

C Gellatly
Director-General

Issued : Employee Relations and Workforce Planning Services (Public Employment Office)
Contact: Simon Spence, Industrial Officer
EMail: [email protected]
Telephone no: 9228 3612 Facsimile: 9228 4056
File no: PSM/03596 PT 1
Date: 25 May 2004
This circular does not supersede any other Memorandum or Circular.

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relates to C2006-25

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Key features of the Commonwealth Defence Employer Support Payment Scheme

The Employer Support Payment Scheme (ESP) provides financial assistance to eligible employers to help offset the costs of releasing employees for most categories of Australian Defence Force (ADF) service.

ESP is paid at a set weekly rate regardless of the employee's salary and there are no restrictions on the way employers can use the money.

The weekly rate is equivalent to the average weekly full-time adult ordinary-time earnings for Australia, based on figures from the Australian Bureau of Statistics.

The ESP weekly rate for the 2003-04 financial year is $899.80. The figure is set for 12 months beginning on 1 July each year. The scheme has operated since 5 June 2001.

All employers including government organisations, partnerships, professional practices, public and proprietary companies, discretionary or unit trusts, the self-employed, sole traders and private employers are eligible to claim ESP.

ESP is payable for full-time and part-time employees, as well as self-employed Reservists. It is paid on a pro rata basis for part-time employees. ESP is not payable for casual employees engaged in work on an irregular or unreliable basis.

To qualify for Employer Support payments:

• an employee's periods of Defence service must be a minimum of five consecutive days
• the employee must have served a qualifying period of 14 days' Defence service (in a single period or blocks of five consecutive days or longer) with the organisation in the current financial year
• claim forms must be submitted within six months of the first day of service for which the claims are being made. Claims submitted outside this period require special justification
• employees must be released on Defence leave or leave without pay and must not be made to use their own leave requirements
• the employee's job must be protected.

The contact at the Department of Defence for Employer Support Payments is

Ms Amanda Staier,
p (02) 6265 4255,
fx (02) 6265 3525, and
email: [email protected]